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New distribution center for animal health products in North America

Bayer HealthCare intends to further extend its strong veterinary business in USA
14. February 2005

Cutting ceremony for the new U.S. distribution center for animal health product in Shawnee (Kansas): From left: Joerg Ohle, Head of Animal Health Division North America of Bayer HealthCare, Annabeth Surbaugh, Chairman of Johnson County Commissioners, Dr. Gunnar Riemann, President of the Animal Health Division of Bayer HealthCare AG.

Das neue US-Distributionscenter für Tierarzneimittel in Shawnee (Kansas) wurde jetzt in Betrieb genommen. Von links: Jörg Ohle, Leiter der Nordamerika-Division Animal Health von Bayer HealthCare, Annabeth Surbaugh Vorsitzende des Johnson County Commissioners und Dr. Gunnar Riemann, Leiter der Division Animal Health.

Leverkusen – Bayer HealthCare’s Animal Health Division has brought a central distribution center for animal health products with a total investment volume of US$ 13 million on stream on Bayer’s site in Shawnee, Kansas. “This center will help us to further strengthen our already extremely successful business with animal health products in North America,” stressed Dr. Gunnar Riemann, Head of Bayer HealthCare’s Animal Health Division at the dedication ceremony, and praised the excellent cooperation with the local authorities. The building complex, which was constructed in the record time of only eight months on the site where Bayer’s veterinary business is headquartered in the United States and Canada, will house some 380 staff working in Production, Research&Development, Sales and Marketing. “This investment is a clear sign of our commitment to our main U.S. site in Shawnee,” declared Jörg Ohle, Head of the Animal Health Division for North America. Shawnee is Bayer HealthCare’s second most important production and manufacturing site for animal health products after Kiel in Germany. A total of more than US$ 120 million has been invested in the site to date. Both facilities comply with the requirements of the U.S. Food and Drug Administration (FDA) and the European Union.

Sales in the north-American veterinary drugs market are estimated at approximately EUR 4.2 billion. With global sales of around EUR 790 million in 2003, Bayer HealthCare AG is one of the leading manufacturers of animal health products and is the world’s number four in the veterinary market. The North American business makes up some 40 percent of Bayer HealthCare’s global animal health sales. Bayer HealthCare is particularly strong in the United States with products for dogs and cats.

Bayer HealthCare AG, a subgroup of Bayer AG with sales of approximately 8.9 billion Euro in 2003, is one of the world's leading, innovative companies in the health care and medical products industry.

The company combines the global activities of the divisions Animal Health, Biological Products, Consumer Care, Diabetes Care, Diagnostics and Pharmaceuticals. 34,600 people are employed by Bayer HealthCare worldwide.

Our aim is to discover and manufacture innovative products that will improve human and animal health worldwide. Our products enhance well-being and quality of life by diagnosing, preventing and treating disease.

Forward-looking statements

This news release contains forward-looking statements based on current assumptions and forecasts made by Bayer Group management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in our public reports filed with the Frankfurt Stock Exchange and with the U.S. Securities and Exchange Commission (including our Form 20-F). The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

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